Which of the Following Is NOT an Advantage of a Finance

question 39

Multiple Choice

Which of the following is NOT an advantage of a finance company over a bank in providing services to small business customers?

• A)Finance companies are less willing to accept risky customers than are banks.
• B)Finance companies are not subject to regulations that restrict the type of products and services they can offer.
• C)Finance companies often have substantial industry and product expertise.
• D)Finance companies generally have lower overhead than banks.
• E)Finance companies do not accept deposits and therefore are not subject to bank- type regulatory restrictions.

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Definitions:

Tanks

Armored combat vehicles with heavy firepower and strong defensive capabilities, primarily used by military forces in ground warfare.

Opportunity Cost

The cost of foregone alternatives, or what is given up in order to pursue a certain action or decision.

Budget

An estimate of income and expenditure for a set period, often used by governments, businesses, and individuals to plan financial operations.

Bananas

A staple fruit globally known for its yellow peel and soft, sweet flesh, often grown in tropical regions.